NEW YORK ( TheStreet ) -- Gold prices battled their way higher Tuesday as bargain-hunters stepped in to take advantage of lower prices. Gold for February delivery closed up $20.90 at $1,617.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,620.80 and as low as $1,594.10 an ounce while the spot price was up $21, according to Kitco's gold index. Silver prices added 66 cents at $29.53 an ounce while the U.S. dollar index was shedding 0.59% at $79.86.
"We are seeing a Santa Claus rally in precious metals," says George Gero, senior vice president at RBC Capital Markets. "We are now back to that 200-day moving average number that was breached
last week and a close there or above may signal a good technical rebound." Gold gained traction early Tuesday after Spain raised more than €5 billion in its latest debt auction and saw strong demand and lower borrowing costs. The news lifted the euro, weakened the dollar and helped gold prices. Greece also raised more than €1 billion for three months at relatively stable borrowing costs. Gold mining stocks were climbing Tuesday. Kinross Gold ( KGC - Get Report) was rallying almost 2.84% at $11.93 while Yamana Gold ( AUY - Get Report) was adding 4.49% at $14.66. Other gold stocks, Agnico-Eagle ( AEM - Get Report) and Eldorado Gold ( EGO - Get Report) were jumping at $37.58 and $13.35, respectively. Alix Steel in New York. >To contact the writer of this article, click here: Alix Steel.